Chapter 28

PENOKEE BRANCH

In 1871 iron ore was discovered in the Penokee Hills of Northern Wisconsin. Gardner Colby and Associates of Boston engaged Geologist Raphael Pumpelly to prospect the area. As a result they invested heavily in Penokee Hills' land.

In 1881 Colby made surveys with the view of building an extension of the Central to Ontonagon, Michigan, 100 miles from Penokee Gap. In 1883 a right-of-way was established from a point on the Wisconsin Central 25.5 miles south of Ashland roughly 35 miles northeast into the Penokee Hills toward the new towns of Hurley and Ironwood.

Incorporated in Wisconsin September 1, 1886, the Penokee railroad was completed in June 1887 to the Michigan State Line, a distance of 26.69 miles. Immediately following, the Gogebic & Montreal River R.R., incorporated in Michigan December 27, 1883, was begun. It was merely an extension of the Penokee R.R. from Hurley to Bessemer, about seven miles. Both roads became members of the Wisconsin Central family of railroads on June 30, 1888 having been operated independently with trackage rights, on the Wisconsin Central, by the contractors Colby & Finney.

Note the date of incorporation of the Gogebic & Montreal R.R. The Colby mine was showing great promise of being a big producer of ore, and it is likely that Colby and his associates had in mind building between their mine and Hurley where a connection could be made with the Milwaukee Lake Shore & Western, but the railroad completed a branch to the Colby Mine instead.

The ore shipments from the famous Colby mine in 1884 were 1,022 tons. In October that year the first Colby ore was shoveled into lumber wagons and hauled to the railroad (M.L.S.&W.). It went on flat cars to Milwaukee, where it was loaded into barges for the long, lake run to Erie, Pa. (*)

In 1885 the Colby mine shipped 84,302 tons; and in 1886 257,432 tons. (*) In 1885 the M.L.S.&W. reached Ashland and its ore dock also was completed.

In 1887 the Wisconsin Central built an ore dock in Ashland and 3.5 miles of yards and terminal tracks adjoining the dock. There was also completed 17 miles of industrial and mine spurs. From the completion of the Penokee R.R. in. June l887 to October when the ore season closed more than 200,000 tons of iron ore was hauled via Mellen to the Ashland ore docks; a notable performance considering the 45 ton locomotives and the unfinished grades and lack of service facilities.

(*)  Vein of Iron by Walter Havighurst.